11

Winter Haven Terminal FacilityWinter Haven Terminal Facility

&&

Integrated Logistics CenterIntegrated Logistics Center

22

The Roll of IntermodalThe Roll of Intermodal

33

Why Why –– The Opportunity!The Opportunity!

CSX & Florida Dept. of Transportation CSX & Florida Dept. of Transportation

partnering to bring transportation partnering to bring transportation

solutionssolutions

-------- people and consumer goods people and consumer goods ------

to the State of Florida in the 21to the State of Florida in the 21stst century.century.

44

The CSX Rail NetworkThe CSX Rail Network

�� Serves all majorServes all major

eastern marketseastern markets

�� Cover 21,000 track Cover 21,000 track

miles in 23 states miles in 23 states

and 2 Canadian and 2 Canadian providencesprovidences

�� Serves more than Serves more than

70 ports70 portsPensacolaPensacolaPensacola

DetroitDetroitDetroit

PhiladelphiaPhiladelphiaPhiladelphia

NorfolkNorfolkNorfolk

CharlestonCharlestonCharleston

SavannahSavannahSavannah

JacksonvilleJacksonvilleJacksonville

NewarkNewarkNewark

CincinnatiCincinnatiCincinnati

TampaTampaTampaOrlandoOrlandoOrlando

MiamiMiamiMiami

BostonBostonBoston

New OrleansNew OrleansNew Orleans

Washington D.C.Washington D.C.Washington D.C.

New YorkNew YorkNew York

MontrealMontrealMontreal

ToledoToledoToledo

MontgomeryMontgomeryMontgomery

CharlotteCharlotteCharlotte

MemphisMemphisMemphis

LouisvilleLouisvilleLouisville

IndianapolisIndianapolisIndianapolis

ChicagoChicagoChicago

ColumbusColumbusColumbus

BuffaloBuffaloBuffalo

SyracuseSyracuseSyracuse

SelkirkSelkirkSelkirk

CharlestonCharlestonCharleston

PittsburghPittsburghPittsburgh

BaltimoreBaltimoreBaltimore

NashvilleNashvilleNashville

East St. LouisEast St. LouisEast St. Louis

AtlantaAtlantaAtlantaBirminghamBirminghamBirmingham

KnoxvilleKnoxvilleKnoxville

55

CSX and the Nationwide Transportation NetworkCSX and the Nationwide Transportation Network

MiamiMiami

OrlandoOrlando

TampaTampa

JacksonvilleJacksonvilleSavannahSavannah

CharlestonCharleston

PortsmouthPortsmouthBaltimoreBaltimorePhiladelphiaPhiladelphia

New YorkNew York

SyracuseSyracuseBuffaloBuffalo

ClevelandCleveland

CincinnatiCincinnati

HoustonHouston

DallasDallas

EvansvilleEvansville

New OrleansNew Orleans

OaklandOakland

LathropLathrop

PortlandPortland

VancouverVancouver

MontrealMontreal

MonterreyMonterrey

QueretaroQueretaro

Mexico CityMexico City

MemphisMemphis

ColumbusColumbus

South SeattleSouth Seattle

LaredoLaredo

GuadalajaraGuadalajara

IndianapolisIndianapolis

ChicagoChicago

NashvilleNashville

MobileMobile

TacomaTacoma

Los AngelesLos Angeles

DetroitDetroit

St. LouisSt. Louis

TorontoToronto

Kansas CityKansas City

AtlantaAtlanta

CharlotteCharlotte

BostonBoston

66

The Supply ChainThe Supply Chain

Ocean transitPort discharge to rail

Rail line-haul

Highway delivery

Inland

RailTerminal

Distribution center

77

U.S. Population Continues to GrowU.S. Population Continues to Grow

U.S. Population

Population in Millions

0

50

100

150

200

250

300

350

1950 1960 1970 1980 1990 2000 2010

Source: U.S. Census 2000Source: U.S. Census 2000

88

Florida Population Continues to GrowFlorida Population Continues to Grow

�� Florida is currently ranks 4Florida is currently ranks 4thth in population behind New Yorkin population behind New York

�� 2004 estimated population was 17.4M = 4.7% increase 2004 estimated population was 17.4M = 4.7% increase over 2003 (US grew by 3.8%)over 2003 (US grew by 3.8%)

�� 1,000 people/day are making Florida their new home1,000 people/day are making Florida their new home

�� By 2020 FL will be 3By 2020 FL will be 3rdrd largest state behind California and largest state behind California and

TexasTexas

99

Transportation Growth is Expected to ContinueTransportation Growth is Expected to Continue

Source: American Association of State Highway and Transportation Officials (all modes)Source: American Association of State Highway and Transportation Officials (all modes)

Transportation Forecast

Ton Miles in Trillions

4

5

6

7

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

1010

Highway Congestion is IncreasingHighway Congestion is Increasing

Source: Department of Transportation, National Transportation StatisticsSource: Department of Transportation, National Transportation Statistics

Highway Infrastructure versus Miles Traveled

Indexed: 1980=100%

75%

100%

125%

150%

175%

200%

225%

250%

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002

Vehicle Miles Traveled Lane Miles

1111

Rail is the Viable Transportation AlternativeRail is the Viable Transportation Alternative

�� Trucks experiencing pressure Trucks experiencing pressure ……..

–– Rising fuel pricesRising fuel prices

–– High driver turnoverHigh driver turnover

–– Rising insurance costsRising insurance costs

–– Hours of service changeHours of service change

–– Highway congestionHighway congestion

–– Driver shortagesDriver shortages

Cost per Mile

Q1 2003 Q1 2006

Trucks Rail

24-28%

8-12%

1212

Positioning the Southeastern Corridor for GrowthPositioning the Southeastern Corridor for Growth

New OrleansNew Orleans

ChicagoChicago

New YorkNew York

JacksonvilleJacksonville

BirminghamBirmingham

NashvilleNashville

AtlantaAtlanta

MiamiMiami

�� Line Capacity ImprovementsLine Capacity Improvements–– Increase train fluidityIncrease train fluidity–– More efficient staging of More efficient staging of

trainstrains–– Improved service reliability & Improved service reliability &

recoverabilityrecoverability–– Greater opportunity to Greater opportunity to

manage flows through manage flows through congested or populated congested or populated areasareas

�� CommercialCommercial

–– Demographic shift creates Demographic shift creates

new customer demandsnew customer demands

–– New central Florida hub for New central Florida hub for

distributiondistribution

1313

Tampa

Jacksonville

Orlando

CSXCSX’’s Main Florida Networks Main Florida Network

Central Florida

– A-Line

– S-Line

– New Intermodal & Auto Terminal + Future Logistics Center

Central FloridaCentral Florida

–– AA--LineLine

–– SS--LineLine

–– New New

Intermodal Intermodal

& Auto & Auto

Terminal + Terminal +

Future Future

Logistics Logistics

CenterCenter

Both Routes are Primarily Single TrackBoth Routes are Primarily Single Track

A-Line – (Future for passenger and freight)

• Now supports 17 trains / day (avg)

• Critical for coal, intermodal, merchandise, automotive and aggregate deliveries

A-Line – (Future for passenger and freight)

• Now supports 17 trains / day (avg)

• Critical for coal, intermodal, merchandise, automotive and aggregate deliveries

S-Line – (Future for freight only)

• Now supports 20 trains / day

• Critical for phosphate, coal, intermodal, automotive, merchandise and juice

S-Line – (Future for freight only)

• Now supports 20 trains / day

• Critical for phosphate, coal, intermodal, automotive, merchandise and juice

1515

FloridaFlorida’’s Rail Future s Rail Future –– A Shared VisionA Shared Vision

�� Commuter rail will be established through OrlandoCommuter rail will be established through Orlando–– Requires relocation of Intermodal and Auto terminalsRequires relocation of Intermodal and Auto terminals

�� Investments in SInvestments in S--Line capacity will:Line capacity will:–– Increase fluidity of rail freight traffic Increase fluidity of rail freight traffic –– Enable transportation of greater volumes of goodsEnable transportation of greater volumes of goods

while minimizing the burden on the highwayswhile minimizing the burden on the highways

�� Central Florida rail facilities will be a hub for business and Central Florida rail facilities will be a hub for business and economic growth locally and Polk Countyeconomic growth locally and Polk County

Key to Success = Coordination + CommunicationKey to Success = Coordination + Communication

1616

What Is Planned For Winter Haven ?What Is Planned For Winter Haven ?

�� A new rail infrastructureA new rail infrastructure

�� Intermodal terminal operationIntermodal terminal operation

�� Automotive terminal operationAutomotive terminal operation

�� Associated warehousing, distribution & service facilities in Associated warehousing, distribution & service facilities in

the the future plansfuture plans

This is not a railroad mixing yardThis is not a railroad mixing yard

1717

Intermodal TerminalIntermodal Terminal

1818

Automotive TerminalAutomotive Terminal

1919

2020

Why Winter Haven?Why Winter Haven?

�� Rail frontage on the CSX mainlineRail frontage on the CSX mainline

�� Central to the Florida freight marketCentral to the Florida freight market

�� Access to SR 60 and other necessary transportation Access to SR 60 and other necessary transportation systemssystems

�� Single ownership siteSingle ownership site

�� Constructability Constructability –– manageable wetlands & endangered manageable wetlands & endangered speciesspecies

�� Public / Private Partnership with the local communities, Public / Private Partnership with the local communities, Polk Co, & the State of FLPolk Co, & the State of FL

2121

Future OpportunitiesFuture Opportunities

2222

Future Uses Future Uses ……. A Comparison. A Comparison

�� Representation from Fortune 500, Global 500 Representation from Fortune 500, Global 500 or Forbes List of Top Private Firmsor Forbes List of Top Private Firms–– Home DepotHome Depot

–– Kraft FoodsKraft Foods

–– Hewlett PackardHewlett Packard

–– FedExFedEx

–– GMGM

–– Michaels StoresMichaels Stores

–– Ashley FurnitureAshley Furniture

–– United Parcel ServiceUnited Parcel Service

2323

ILC ILC –– Potential Public Benefits Potential Public Benefits

�� Output (cost of goods & services) during Output (cost of goods & services) during construction construction -- $112M$112M

�� 1,370 jobs Yrs 1 & 2 1,370 jobs Yrs 1 & 2 –– construction, services, construction, services, etc.etc.

�� 110 jobs at terminal @ opening110 jobs at terminal @ opening

�� $10.6B in output$10.6B in output

�� $900M in tax revenues$900M in tax revenues–– $400M @ state & local level$400M @ state & local level

�� 8,500 jobs8,500 jobs

Over 10 year projected build-out

2424

Environmental Benefits of Rail TransportationEnvironmental Benefits of Rail Transportation

�� A gallon of diesel fuel can move a ton of freight a A gallon of diesel fuel can move a ton of freight a

distance of 423 miles. distance of 423 miles.

�� Less greenhouse gas emissions than trucks Less greenhouse gas emissions than trucks …….. ..

about 4 times about 4 times

�� A single intermodal train can take 280 long haul A single intermodal train can take 280 long haul

trucks off of the highwaytrucks off of the highway

2525

CSXCSX’’s Commitment to Environmental Stewardships Commitment to Environmental Stewardship

�� First railroad to join EPAFirst railroad to join EPA’’s Climate Leaders s Climate Leaders program.program.

�� Implemented new technology and conservation Implemented new technology and conservation efforts to reduce annual fuel use by 30 million efforts to reduce annual fuel use by 30 million gallons or 690 million tons of carbon dioxide.gallons or 690 million tons of carbon dioxide.

�� Invested more than $1 billion to upgrade its fleet Invested more than $1 billion to upgrade its fleet with more fuel efficient, lowwith more fuel efficient, low--emission locomotives.emission locomotives.

2626

Current Projected TimelineCurrent Projected Timeline

�� 2008 2008 –– Effective Development OrderEffective Development Order

�� 2008 2008 –– SWFWMD PermitSWFWMD Permit

�� 2009 2009 –– USACOE PermitUSACOE Permit

�� 2009 2009 –– Pollard Rd Construction StartPollard Rd Construction Start

�� 2009 2009 –– Terminal Construction StartTerminal Construction Start

�� 2010 2010 –– Terminal OpeningTerminal Opening